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Pacific Economic Monitor
December 2020 www.adb.org/pacmonitor
PREPARING FOR RECOVERY
As Pacific developing member countries chart a course toward a post-pandemic
world, sufficient provisioning for health and social protection, including for
vaccine procurement and distribution, will help facilitate swift, inclusive, and
sustainable recovery from the coronavirus disease (COVID-19) crisis.
CONTAINMENT AND SOCIAL PROTECTION
HEALTH PREPAREDNESS AND FOOD SECURITY
Health and
hygiene
facility
upgrades
Access to
COVID-19 vaccine
Travel restrictions Agricultural
and social Quarantine support, food
distancing Procurement facilities rations, and
of testing and feeding programs
publicprotective
awareness for food security
campaigns Capacity
equipment building for Reduced
health-care Cash transfers education
workers costs
Subsidies for
low-income
households, informal
workers, and other
ECONOMIC STIMULUS vulnerable groups
Unemployment support
and temporary
employment
schemes
Financing for affected
businesses, including
micro/small and Infrastructure Flexible Prevention of gender-based
women-owned investments financing from violence, and support to survivors
enterprises banks and
provident funds
Support for key
Continuity of essential economic sectors,
public services: water, particularly Support to Repatriation
power, and transport civic welfare and financial
agriculture, support to citizens
fisheries, and tourism organizations
stranded abroad2 Highlights
Asian Development Bank Projections
GDP Growth
Contents Tuvalu
Pacific subregion
Pacific islands
2020p 2.0
2.5
International and regional developments 3 5
2021p
Nauru 0.7
Country economic issues 5 0
0.5
Policy briefs: Kiribati 0.6
1.8
Toward a gender-inclusive response -5
Tonga (2.7)
to the COVID-19 crisis: insights from -10 (6.5)
the latest census in the Federated PNG (2.9)
-15 2.5
States of Micronesia 27 2016 17 18 19 20p 21p (3.5)
Social protection and COVID-19 in the Samoa (10.7)
Pacific: economic inoculation to mitigate (5.4)
FSM
the impacts of the pandemic 33 (1.8)
Cost-effectiveness of a COVID-19 vaccine Marshall Islands (5.5)
(1.4)
in the Pacific: a preliminary analysis 37
(6.0)
Health spending and foreign aid Solomon Islands 1.0
in the Pacific 40 Cook Islands (7.0)
(15.4)
Economic indicators 44
(9.8)
Vanuatu 1.0
(13.8)
reative Commons Attribution 3.0
C Palau (13.2)
IGO license (CC BY 3.0 IGO)
Fiji (19.8)
1.0
© 2020 Asian Development Bank.
Some rights reserved. Published in 2020. (24.0) (20.0) (16.0) (12.0) (8.0) (4.0) 0.0 4.0
Printed in the Philippines.
Change in real GDP (%) 2020p 2021p
ISBN 978-92-9262-576-4 (print); 978-92-9262-577-1 Inflation
(electronic); 978-92-9262-578-8 (ebook)
ISSN 2521-6066 (print), 2521-6074 (electronic) Solomon Islands 3.0
6.0
Publication Stock No. SPR200390-2 Papua New Guinea 3.3
3.8
DOI: http://dx.doi.org/10.22617/SPR200390-2
3.0
Tuvalu 3.0
Asian Development Bank 3.0
Vanuatu
Pacific Economic Monitor, December 2020. 2.2
Mandaluyong City, Philippines. Samoa 1.5
1.7
This edition of the Monitor was prepared by Erik Aelbers, 1.6
FSM 1.9
Ananya Basu, Robert Boumphrey, Jacqueline Connell, Prince
Cruz, Noel Del Castillo, Edward Faber, Lily Anne Homasi, Kiribati 1.0 Pacific subregion
1.1
6 Pacific islands
Magdelyn Kuari, Rommel Rabanal, Cara Tinio, Isoa Wainiqolo, 0.9
Nauru
and James Webb of the Pacific Department. Publishing 1.2
production assistance was provided by Cecil Caparas. Cook Islands 0.7 4
1.5
The views expressed in this publication are those of the authors 0.4
Palau 0.8
and do not necessarily reflect the views and policies of the 2
Asian Development Bank (ADB) or its Board of Governors or Marshall Islands 0.3
0.5
the governments they represent. 0
Tonga 0.2
1.5 2016 17 18 19 20p 21p
ADB does not guarantee the accuracy of the data included
in this publication and accepts no responsibility for any Fiji (2.5)
0.8
consequence of their use. The mention of specific companies
or products of manufacturers does not imply that they are (4.0) (2.0) 0.0 2.0 4.0 6.0 8.0
endorsed or recommended by ADB in preference to others of a Change in consumer price index (%, annual average) 2020p 2021p
similar nature that are not mentioned.
By making any designation of or reference to a particular ( ) = negative, FSM = Federated States of Micronesia, GDP = gross domestic product, p =
territory or geographic area, or by using the term “country” projection, PNG = Papua New Guinea.
in this document, ADB does not intend to make any judgments Notes: Projections are as of July 2020 and refer to fiscal years. Regional averages of GDP
as to the legal or other status of any territory or area. growth and inflation are computed using weights derived from levels of gross national income
in current United States dollars following the World Bank Atlas method. Averages for the
This work is available under the Creative Commons
Pacific islands exclude Papua New Guinea. No growth and inflation projections for Niue.
Attribution 3.0 IGO license (CC BY 3.0 IGO) Source: Asian Development Bank estimates.
https://creativecommons.org/licenses/by/3.0/igo/. By using the
content of this publication, you agree to be bound by the terms
of this license. For attribution, translations, adaptations, and
permissions, please read the provisions and terms of use at Notes
https://www.adb.org/terms-use#openaccess. This Monitor uses year-on-year (y-o-y) percentage changes to reduce the
This CC license does not apply to non-ADB copyright materials impact of seasonality, and 3-month moving averages (m.a.) to reduce the
in this publication. If the material is attributed to another source, impact of volatility in monthly data.
please contact the copyright owner or publisher of that source
for permission to reproduce it. ADB cannot be held liable for any
claims that arise as a result of your use of the material.
Fiscal years end on 30 June for the Cook Islands, Nauru, Samoa, and Tonga;
31 July for Fiji (national accounts are on a calendar year basis); 30 September
Printed on recycled paper in the Marshall Islands, the Federated States of Micronesia, and Palau; and
31 December elsewhere.International and
Regional Developments
A bumpy recovery amid continued threat of COVID-19 Gross Domestic Product Growth (%, annual)
World
•• The global economy continues to struggle from the impact of the coronavirus
disease (COVID-19) pandemic. While some economies have rebounded in Developing Asia
the third quarter of 2020, the continued threat of COVID-19 remains the Pacific DMCs
primary concern, with governments reinstating partial containment measures United States
to deal with new outbreaks in certain areas. The latest forecast is for a 4.4%
PRC
global contraction in 2020 but for a recovery in 2021 with growth of 5.2%. The
economy of developing Asia is expected to contract by 0.7% in 2020, the first Japan
regional recession in almost 6 decades. It is projected to post a 6.8% recovery Australia
in 2021, slower than the pre–COVID-19 forecast. Risks to the outlook are on New Zealand
the downside, depending heavily on the speed of resolving the pandemic as
well as the extent of global spillovers from a weakened external sector. –10 –5 0 5 10
2019 2020p 2021p
•• The Pacific subregion reels as the pandemic devastates its economies, which ADB = Asian Development Bank, DMC = developing member
rely mostly on the external sector. From the 4.3% decline forecast in July 2020, country, GDP = gross domestic product, p = projection,
the subregional gross domestic product (GDP) forecast for 2020 has been PRC = People’s Republic of China.
further downgraded. The two largest economies in the Pacific—Papua New Notes: Developing Asia and Pacific DMCs as defined by
ADB. Figures are based on ADB estimates except for world
Guinea and Fiji—are expected to suffer worse than previously forecasted. GDP growth.
With travel bans and different forms of containment measures still in place, Sources: ADB. 2020. Asian Development Outlook 2020 Update:
other tourism-dependent countries such as the Cook Islands, Niue, Palau, and Wellness in Worrying Times. Manila; International Monetary
Vanuatu struggle to prop up their economies. Meanwhile, smaller economies Fund. 2020. World Economic Outlook October 2020: A Long and
Difficult Ascent. Washington, DC.
that depend on imported basic commodities are suffering from bottlenecks
brought about by the pandemic. The subregion is expected to recover and Gross Domestic Product Growth
grow by 1.3% in 2021, contingent on how quickly travel and trade restrictions in Developing Asia (%, annual)
are lifted.
7
•• The United States bounced back in the third quarter of 2020 as the economy grew 5
3
at an annualized rate of 33.1%. The jump came after a 31.4% contraction in the 1
previous quarter as many states across the country implemented containment –1
–3
measures to stem the spread of the virus. Higher consumption, together with –5
advances in business and residential investment as well as exports, drove the –7
recovery. Nevertheless, risks remain on the downside as the number of COVID-19 –9
Regional Central East South Southeast
cases increases. The full-year 2020 forecast remains unchanged, with the United average Asia Asia Asia Asia
States economy expected to contract by 5.3%. However, the 2021 recovery now 2018 2019 2020p 2021p
appears to be slightly faster at 4.0% compared with the earlier forecast of 3.8%.
p = projection.
•• After contracting by 6.8% year-on-year (y-o-y) in the first quarter, the Source: Asian Development Bank. 2020. Asian Development
People’s Republic of China recovered strongly, posting 3.2% growth in the Outlook 2020 Update: Wellness in Worrying Times. Manila.
second quarter, followed by 4.9% in the third quarter. Broad-based growth was
observed in most sectors, with the manufacturing, mining, and utilities sectors COVID-19 Cases in Pacific DMCs
700 Papua New Guinea, 669 cases
growing the fastest at 6.0% in the third quarter from a year earlier. While the
services sector is expected to recover further, weak domestic consumption 600 Fiji
Country Active cases
7
Recovered
33
Death
2
and external sector will continue to dampen recovery. The economy of the
Marshall Islands 0 4 0
Papua New Guinea 65 597 7
500
People’s Republic of China is forecast to grow by 1.8% in 2020 and accelerate
Samoa 2 0 0
Solomon Islands 12 5 0
to 7.7% in 2021.
Vanuatu 0 1 0
400
Fiji, 42 cases
•• After three quarters of recession, Japan’s economy exited recession as it 300 Solomon Islands, 17 cases
posted an annualized growth of 21.4% in the third quarter of 2020 led by 200
Marshall Islands, 4 cases
higher domestic and external demand. Although this exceeded expectations, Samoa, 2 cases
100 Vanuatu, 1 case
the economy is still 6.0% smaller than it was a year ago. A 4.7% growth in
private consumption was recorded as households spent more on cars, leisure, 0
and restaurants; and overseas demand pushed exports up by 7.0%. Despite
this, the full-year 2020 projected contraction for Japan’s economy has been
further downgraded to 5.4% from the initial forecast of a 5.0% contraction. COVID-19 = coronavirus disease, DMC = developing
Expected growth in 2021 remains at 2.0%. member country.
Note: Data as of 1 December 2020.
•• The Australian economy plunged into a recession after its GDP shrank by 7.0% Sources: M. Roser, H. Ritchie, E. Ortiz-Ospina, and J. Hasell.
in the second quarter of 2020. The combined impact of the pandemic and 2020. Coronavirus Pandemic (COVID-19). Published online at
OurWorldInData.org. Retrieved from: https://ourworldindata.org/
government containment measures led to large drops across several economic coronavirus; Worldometer COVID-19 Data.4 Pacific Economic Monitor
Average Spot Price of Brent Crude Oil aggregates. Closures of hotels, restaurants, and other services because of the
(monthly, $/bbl) pandemic resulted in more than 12.0% drop in household consumption and
90 almost 18.0% fall in spending on services. The outlook remains uncertain over
80 concerns of possible succeeding waves of the virus outbreak. The Consensus
70 Forecast for 2020 is a contraction of 4.0% in 2020 and growth of 2.8% in 2021.
60 •• New Zealand’s economy posted its deepest recession yet, with GDP
50 contracting by 12.2% in the second quarter of 2020. The nationwide lockdown,
40 implemented by the government to contain the pandemic, paralyzed business
30 activity. Widespread declines have been recorded across indicators. Household
spending declined by 12.1% with major declines in spending on services, e.g.,
20
restaurant meals, ready-to-eat food, domestic air passenger services, and
recreation and cultural activities. Meanwhile, investment spending fell by
0
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20.8% because of less construction, as well as reduced investments in plant,
n2
2
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2
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machinery, and equipment. The Consensus Forecast projects the economy to
$/bbl = dollars per barrel. shrink by 5.9% in 2020 and recover by 4.8% the following year.
Source: World Bank Commodity Price Data (Pink Sheet).
Mixed prospects for commodity prices as COVID-19 remains a major risk
•• Some commodity prices are starting to rise again, while others remain low
Price of Export Commodities
(2018 = 100, annual) relative to pre-pandemic levels. Brent crude oil prices were 31.0% lower in the
third quarter of 2020 (y-o-y). The revised full-year forecast for 2020 projects
150 oil prices to drop by 32.9% compared with the 42.6% initially forecast. The
140 duration and severity of the pandemic pose the greatest risk to the forecast.
130 On the other hand, prices of agricultural commodities have recovered from the
120
110
declines earlier in the year, with the price index growing by 6.3% in the third
100 quarter of 2020 (y-o-y). Lower production of some edible oils and meals,
90 strong demand for raw materials, and a weaker United States dollar were the
80 main drivers of the recovery. Latest full-year 2020 forecasts indicate a 2.8%
70
60 growth in agricultural prices instead of a decline, and steady growth thereafter.
2018 2019 2020p 2021p 2022p
•• The average price of liquefied natural gas fell by 34.3% in the third quarter of
LNG Coconut oil Logs 2020 (y-o-y). Weaker demand for natural gas has been attributable to the
Gold Cocoa Phosphate COVID-19 pandemic and subsequent associated global recession, although
Coffee the impact has been much smaller than for oil. The price is projected to
LNG = liquefied natural gas, p = projection. decline by 17.9% for 2020 as a whole and to continue falling over the next
Source: Asian Development Bank calculations using data few years. Cocoa prices have been broadly stable in the third quarter and
from World Bank Commodity Price Data (Pink Sheets). are expected to grow modestly by 3.0% in 2020 as global demand picks up,
following the slump during the lockdown. Meanwhile, the average price of
Arabica coffee was up by 22.0% in the third quarter of 2020, with growth
Tourist Departures Bound for Pacific Destinations of 17.0% forecast for the full year. Gold prices continue to advance, rising by
(’000 persons, January–August totals) 29.6% in the third quarter of 2020 because of production disruptions and
302.6 304.2 312.6 reduced gold recycling. These are seen to increase by 28.1% for the full year.
282.9 278.4
246.5 Tourism to the Pacific remains closed, recovery time frame uncertain
•• As the pause in global tourism persists, Pacific destinations continue to receive
minimal numbers of international travelers. In April–September 2020, monthly
tourist arrivals in the Pacific declined by 99%–100% (y-o-y). Prospects for
93.5
66.1 recovery remain highly uncertain, with plans for potential travel bubbles and
other similar arrangements stalled by lingering health safety issues. In the North
Pacific, a planned travel bubble between Palau and Taipei,China was postponed
2017 2018 2019 2020 in late October because of Palau’s concerns regarding its health system’s
Australia New Zealand capacity to manage potential COVID-19 cases or outbreaks. Further, although
the first stage of the trans-Tasman travel bubble was opened in mid-October—
Sources: Australian Bureau of Statistics and Statistics
New Zealand.
allowing one-way travel without quarantine from New Zealand to select
destinations in Australia (i.e., Australian Capital Territory, New South Wales,
and Northern Territory)—full implementation was delayed in view of a second
wave of COVID-19 cases in Victoria. Thus, any expansion of this travel bubble
to include South Pacific destinations—perhaps starting with the Cook Islands,
Fiji, and Niue—is likely to be pushed back into 2021 at the earliest.
Lead authors: Noel Del Castillo and Rommel RabanalCOUNTRY ECONOMIC ISSUES
Cook Islands: a balancing act April to December 2020. In November, the government extended
for economic recovery the implementation of the plan up to the end of February 2021 on
the understanding that a travel bubble with New Zealand is expected
Lead author: Lily Anne Homasi to begin operations in early 2021. As of 27 November 2020, the
Cook Islands has no reported cases of COVID-19. The extension to
The Cook Islands’ tourism-dependent economy continues to be the wage subsidy recognizes that the business community requires
severely affected as the COVID-19 pandemic resulted in border additional funds to get itself ready for a pickup in economic activity.
closures that halted arrivals of visitors. With the shutdown of Although the injection from the stimulus package (12.3% of GDP in
international travel, GDP is estimated to have declined by 7.0% FY2020) helped to keep jobs and support some economic activity,
for fiscal year (FY) 2020 (ended 30 June 2020) (Figure 1). Even the establishment of the travel bubble and resumption of visitor
if borders were to open in January 2021, the Asian Development arrivals will be key to economic recovery.
Bank (ADB) anticipates that GDP would decline by 15.4% for
FY2021. The contraction is expected to impact employment and Fiscal performance for FY2020 better than anticipated. The
household incomes, particularly for women who hold 60.5% of Government of the Cook Islands’ preliminary results for FY2020,
tourism-related jobs. released in October 2020, revealed that the fiscal deficit was
NZ$11.9 million, or 2.4% of GDP, much lower than the government’s
initial estimate of 12.4% of GDP (Figure 2). This is largely because
Figure 1: Cook Islands Economic Losses—Gross Domestic income tax receipts (NZ$15.9 million) were higher than expected,
Product and Visitor Arrivals (year-on-year % change) and operational and capital expenditures (NZ$27.6 million and
NZ$11.1 million lower, respectively) were significantly lower than
% %
expected. It is unclear whether the increase was a direct result of
15 40
the stimulus package, or because of tax recovered from delayed
10 tax returns. The smaller deficit would have less of an impact on
20
government cash reserves, allowing some room for the government
5
0
to sustain COVID-19 expenses, while it secures additional financing
0
externally to continue to stimulate the economy and actively pursue
–20 the proposed travel bubble with New Zealand.
–5
–40
–10
Figure 2: Fiscal Balances of Cook Islands
–15 –60
% of gross domestic product
–20 –80 80
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020p 2021f
60
GDP (lhs) Visitor arrivals (rhs) 40
f = forecast, GDP = gross domestic product, lhs = left-hand scale, 20
p = preliminary, rhs = right-hand scale.
Note: Figures are based on fiscal year ended 30 June. 0
Sources: Government of the Cook Islands, Ministry of Finance; and Asian
Development Bank estimates. –20
–40
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020p FY2021f
Countercyclical measures quickly deployed to relieve livelihoods
and businesses. Anticipating the adverse impact of COVID-19 Revenue Expenditure
on the economy and people, the government quickly mobilized Fiscal balance (ADB estimates) Fiscal balance (government
countercyclical measures that are supported through the Economic preliminary results, FY2020)
Response Plan (ERP) phases I (NZ$61 million, or 12.3% of GDP in f = forecast, FY = fiscal year, p = preliminary.
FY2020) and II (NZ$76 million, or 17.7% of GDP in FY2021). The ERP Note: Figures are based on fiscal year ended 30 June.
is geared toward mitigating risks that are associated with the impact Sources: Government of the Cook Islands, Ministry of Finance; and Asian
Development Bank estimates.
of COVID-19 on livelihood and businesses. They support the health
system; and provide employment support and tax and credit relief
for businesses, free or subsidized training, and cash grants to poor A larger fiscal deficit in FY2021 and need for fiscal consolidation
and vulnerable households. The wage subsidy channeled through in the medium term. The ERP phase II is seen to contribute to a
employers and/or businesses (to retain workers in employment) high budget deficit projected at 33.1% of GDP in FY2021, with the
is, by far, the single largest expenditure under the ERP, estimated at government anticipating cash reserves to be depleted as early as
17.9% of spending under phase I and 38.2% of that under phase II. June 2021. Planned public sector management reforms are geared
Most support under the ERP was scheduled to be rolled out from towards enhanced fiscal performance for a smooth recovery in the6 Pacific Economic Monitor
medium term. The crises in the mid-1990s and 2008–2009 helped surpluses allowed for the creation and buildup of fiscal buffers in
the Government of the Cook Islands to enhance the resilience of the stabilization fund, which reached 11.4% of GDP in FY2020. The
its medium term fiscal management with the establishment and targeting of government spending on infrastructure would not only
enforcement of target fiscal ratios. However, these ratios could create jobs but also improve business environment through better
benefit from a review, given that the impact of the COVID-19 services in information and communication technology, transport,
pandemic is significantly larger than previous crises. The fiscal ratios electricity, and water and sewage. Such targeted spending would
and their thresholds should continue to be relevant and reflective of promote private sector investment in the economy, which in turn
the medium term outlook that allows for short term fiscal expansion facilitates fiscal consolidation efforts. Having a medium-term fiscal
followed by medium term fiscal consolidation. For instance, increasing strategy that considers quality public expenditures as well as fiscal
the debt-to-GDP threshold from the current ceiling of 35% of GDP to sustainability would improve long-term economic outcomes.
a reasonable threshold that provide this flexibility in the short term, but
then adjust back to 35% in the medium term. The specific reforms—
cash management, building fiscal buffers, enhanced monitoring of Endnotes
the ERP, strategic planning, and public financial management (PFM)
targeted to improve domestic resource mobilization—should support 1
The Cook Islands is not a member of the International Monetary
overall improvements to the medium term fiscal framework in line Fund and the World Bank.
with the government’s draft economic development strategy.
2
This is net of the Loan Reserve Fund, which averaged 0.9% of
More importantly, the Cook Islands is likely to be the first Pacific island GDP during the same period.
country to launch a travel bubble with New Zealand. Discussions
between the two countries are advanced, with the Government of 3
The Cook Islands does not have a reserve bank and uses the New
New Zealand fielding a special mission to the Cook Islands from 14 Zealand dollar as its currency; hence, there is no monetary policy.
November to consult with the government and other stakeholders
on the readiness of the Cook Islands to safely open up and receive
tourists. The findings from the mission are expected to inform areas References
to be strengthened before the bubble is launched. ADB is supporting
the Government of the Cook Islands, including technical assistance Asian Development Bank (ADB). 2020a. Asian Development
to the Airport Authority Cook Islands to enhance the readiness of Outlook. 2020: What Drives Innovation in Asia? Special Topic: The
the Rarotonga International Airport. Coordinated efforts on this by Impact of the Coronavirus Outbreak – An Update. Manila.
stakeholders involved is key to ensuring a quick resumption of a safe
travel zone that would help to revive the economy. ADB. 2020b. Report and Recommendation of the President to the
Board of Directors: Proposed Countercyclical Support Facility Loan to
Additional financing would increase public debt in the near- the Cook Islands for the COVID-19 Active Response and Economic
term. Since closing the borders in March 2020, the government Support Program. Manila.
has been actively pursuing avenues to sustain the economy. Over
FY2021–FY2022, government financing needs are estimated at Government of the Cook Islands. 2020a. Budget Estimates 2020/21.
$147.8 million. The government is expected to source this funding Rarotonga. http://www.mfem.gov.ck/images/MFEM_Documents/
externally, mainly from the Government of New Zealand, ADB, and Budget_Books/2020-21/2020 2024_Budget_Book_1_-_
the Asian Infrastructure Investment Bank.1 For many years, public net Estimates_-_Final.pdf.
debt as a percentage of GDP2 has been low—averaging 19.7% for the
period FY2016–FY2019—and well within the government’s threshold Government of the Cook Islands. 2020b. Financial Results for the
of 35.0%. With the fiscal expansion and additional borrowing, net year ending 30 June 2020. Rarotonga.
public debt is expected to increase from 16.7% of GDP in FY2019 to
43.8% of GDP in FY2021. Although this will surpass the government’s Homasi, L. and J. Webb. 2020. Impacts of COVID-19 on the Cook
35% threshold, ADB anticipates net debt to wind back and stay within Islands economy: Charting a path to recovery. Pacific Economic
its fiscal targets in FY2024 and onward. Monitor. July.
Fiscal prudence and private sector investment key for International Monetary Fund. 2020. Cook Islands Technical
sustainability. Fiscal policy is the key instrument for the government Assistance Report–Macroeconomic, Financial and Structural
to steer development outcomes.3 From FY2016 to FY2019, the fiscal Policies. IMF Country Report No. 20/269. Washington, DC.
surplus averaged 5.7%, following tax reforms in 2014. The fiscalCountry Economic Issues 7
Fiji’s long wait for tourism resumption the Fiji National Provident Fund. As of 6 November, a total of F$136
million has been paid out to 177,000 members which includes
Lead author: Isoa Wainiqolo F$43.7 million in government’s contribution.2
The tourism-dependent Pacific island nation has won praises for its The government announced its FY2021 (ends 31 July) budget on
handling of the pandemic. It has been more than 7 months since the 17 July 2020, only 4 months after Parliament had passed an initial
last case of community transmission and the government has declared COVID-19 Response Budget. The impact of COVID-19 has been
the country “COVID-19 contained.” However, the economic impact significant, with revenue as a percentage of GDP falling from 27.3%
has been unprecedented, with no clear end in sight. Countercyclical in FY2019 by 0.9 percentage points (pp) in FY2020 and a further 9.5
fiscal and monetary policy measures have been implemented with pp projected for FY2021 (Figure 4). Compared with FY2020, total
the former constrained by the lack of fiscal space and the resultant revenue in FY2021 is expected to be 33.3% lower (with value-added
increasing debt ratios. Monetary policy, on the other hand, benefitted tax collections down by 8.2% and custom duties down by 44.2%),
from the strong foreign reserves position pre-crisis, aided by rising while expenditure is projected to increase by 3.9%. The fiscal deficit
personal remittances. While the welfare of its populace should is expected to increase to the equivalent of 20.2% of GDP in FY2021
remain the priority of any government, fiscal policy needs to tread a from 8.2% in FY2020. Government debt is projected to increase
fine line between providing additional stimulus to support recovery from the equivalent of 49.3% of GDP at the end of FY2019 to 65.6%
and keeping debt sustainability indicators in check. at the end of FY2020 and 83.4% the end of FY2021.
To contain community transmission of COVID-19, the government
implemented localized lockdowns, in consultation with the World Figure 4: Fiji Fiscal Impact of COVID-19
Health Organization, while incoming passengers had to go through
mandatory testing and 14 days quarantine in government monitored % of gross domestic product
hotels. As of 7 December 2020, 35 out of the 42 confirmed cases 40
had recovered, with 2 returning medical patients succumbing to the 30
virus while in quarantine (Figure 3). 20
10
Figure 3: Confirmed COVID-19 Cases in Fiji 0
9 –10
Number of cases
8
7 –20
6
5 –30
4
3 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
2
1 Government revenues Government expenditures
0
Fiscal balance of central government
12 ep
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FY = fiscal year.
ee
Note: From 2016, fiscal years end in July 31. Before 2016, fiscal years were
W
Week reported
Travel Travel associated contact Border quarantine
based on calendar years. The FY2021 impact on revenue includes the lost
revenue arising from the tax reductions undertaken by the Government of Fiji
to revive the economy.
Source: Government of Fiji, Ministry of Health and Medical Services. Source: Government of Fiji, budget documents.
The FY2021 budget reflects hopes of a travel bubble with the major
Despite the easing of restrictions, economic costs continue to tourist source markets of Australia and New Zealand before the end
mount. ADB projects the economy is likely to contract by 19.8% of 2020. Many of the new budget measures were specifically aimed
in 2020 and may only post a minimal recovery of 1.0% in 2021, at increasing tourism competitiveness when borders reopened.
assuming tourists start returning in the second half of the year.1 A F$400/tourist travel subsidy was allocated to the first 150,000
tourists to encourage forward bookings and support a quick
Recent indicators suggest significant declines in household recovery. The government also introduced a Blue Lane initiative3
demand. New consumption lending declined by 24.9% in the first targeting yachts to dock in Fiji. Other measures aimed to simplify
nine months of 2021 while value-added tax collections declined the tax system, reduce business operating costs by removing the
by 41.2% attesting to low trading activity. On a positive note, service turnover tax, and ease the barriers to trade. Due to the
remittances (4.9% of GDP in 2019) have held up, increasing 7.3% extended border closures, most of these initiatives have so far had
in the year to October. However, the contraction in GDP, stemming limited impact.
largely from declines in tourism, has had a profound impact on
household incomes. Given the scale of the decline, the government This creates a challenging environment for the government.
decided to continue unemployment support for members of the Fiscal stimulus is still required to support business and household8 Pacific Economic Monitor
incomes, but some measures may need to be unwound earlier than Endnotes
anticipated to ensure fiscal sustainability. Normal revenue recovery
from economic growth may not be enough to support ongoing 1
The Government of Fiji released new calendar year growth
spending needs, particularly if the recent reductions in effective projections on 24 November 2020. The economy is now forecast
tax rates are not compensated with new revenue sources. In the to contract by 19.0% in 2020 (compared with government
immediate term, there is an ongoing need for fiscal support, but in forecast of -21.7% from July 2020), due to the agriculture sector
the medium term, fiscal consolidation will be an important policy performing better than anticipated, while contractions in the
agenda, for example by revisiting the revenue policies and improving wholesale and retail trade, manufacturing, and construction
expenditure targeting. sectors were lower than expected. The forecast of a recovery
in 2021 was downgraded to a range between 1.6% and 8.0%
It is encouraging that the Fiji Revenue and Customs Service is (compared with government forecast of 14.1% in July 2020),
continuing automation of processes by rolling out a new tax due to revised assumptions on the speed of the recovery of the
information system. This is likely to further lower compliance costs tourism sector. The current account deficit is now expected
for taxpayers and provide real time data for better decision-making, to deteriorate to -15.7% of GDP (compared with government
forecasting, and planning to mitigate the likely revenue gap during forecast of -4.8% of GDP in July 2020).
the economic recovery.
2
Affected employees draw down part of their superannuation
Given the fall in revenues and the need for continued stimulus, funds (general balance) first. The government will top up
the Government of Fiji increased its external borrowings. In the those who do not have sufficient general account balance. By
FY2021 budget, 51% of gross financing is expected to be financed by construction, 30% of superannuation contributions are in a
external loans, much larger than in previous years. The government general account with possible withdrawals for life-cycle events,
optimized the financing mix considering the likely impact of while the rest is kept in a preserved account specifically for
the pandemic on local institutions, the low foreign interest rate retirement purposes.
environment, the increased commitment of multilateral partners
and the loss of foreign currency earnings from tourism. 3
It was an initiative targeting yachts who were looking for ports
(given most Pacific island countries do not want to allow them in).
Liquidity has also improved with the central bank noting historical So, if they have been out for more than 14 days since the last dock,
levels of bank demand deposits in August after drawdown of then they are given a chance to berth provided their passengers
external loans. This has resulted in low interest rates which may and crew show negative COVID-19 test results.
result in improved lending activity during the recovery phase.
However, in its latest Financial Stability Review, the central bank has 4
In its latest Financial Stability Review published in October 2019,
indicated an increasing trend of nonperforming loans over the last 5 the Reserve Bank of Fiji says that, despite an increasing trend over
years.4 Given the uncertainty surrounding the duration of the crisis, the last 5 years, nonperforming loans (NPLs) have “… remained
this may necessitate increased policy support until income levels at manageable level as majority of the households’ NPLs are for
normalize. housing loan which is understood to be adequately secured by
properties.” The central bank had also conducted stress tests as a
In the long term, the threat of climate change remains a major risk check on the strength of Fiji’s financial system and concluded that
for fiscal management. Fiscal consolidation is key in creating the it can withstand a range of financial shocks.
needed fiscal buffers to address any emerging shocks from natural
hazards. Other external shocks, such as rise in oil prices, will also
deteriorate the balance of payments position. References
The government has been flexible in extending its support where it Government of Fiji Ministry of Economy. 2020. Economic and Fiscal
sees need. A cash-for-work program will be piloted in the western Update Supplement to the 2020-2021 Budget Address. Suva.
part of Fiji targeting informal workers—workers who would have
been hit hard by the significant scaling down of that region’s tourism Government of Fiji Ministry of Economy. 2020. Economic and Fiscal
industry. Full recovery of tourism and the economy will require the Update Supplement to the COVID-19 Response Budget Address. Suva.
availability and distribution of the COVID-19 vaccine. Until then, a
collective effort is required from all stakeholders in Fiji to minimize Government of Fiji Ministry of Health and Medical Services. 2020.
the economic impacts of border closures. COVID-19 Update: 20th November 2020. http://www.health.gov.fj/
wp-content/uploads/2020/11/November-20th-Updates.pdfCountry Economic Issues 9
Leaving no one behind: a look at the plight overseas. Containment measures in other countries, particularly
of the vulnerable in Kiribati and Tuvalu in Kiribati’s major import partners (Australia and Fiji), have also
resulted in reduced supply because of the closure of nonessential
amid COVID-19 services, longer manufacturing times because of reduced workforce,
and logistics bottlenecks in the shipping of basic food items and
Lead authors: Noel Del Castillo, Lily Anne Homasi, and Isoa Wainiqolo construction materials. It created an atmosphere of panic buying,
which adversely affected the poor and the vulnerable who are
Like many other Pacific countries, prompt travel restrictions have incapable of buying in bulk. Since March 2020, supply of essential
ensured that Kiribati and Tuvalu are two of the few countries foods has improved with container ships arriving in the country
in the world that remain free from COVID-19 infection. The every month.
potential impact of a virus outbreak in both Kiribati and Tuvalu
could be catastrophic because of the general living conditions of The pandemic has been problematic particularly for the travel industry.
the population, weak national health systems, and complications The tourism sector lost almost A$1 million in forgone revenue and
arising from existing public health issues in both communicable and laid off 159 workers (ADB 2020a). Three locally based international
noncommunicable diseases. travel agencies have now closed and about 20 employees were laid off.
Domestic air travel has been erratic because of the inability to source
Compared with other Pacific developing member countries, the spare parts on time. Many I-Kiribati were stranded in foreign ports
economic impacts of COVID-19 are relatively limited in Kiribati and as governments implemented their containment measures. Those
Tuvalu (Figure 1, page 33). Tourism industries in both countries are stranded included government employees on official travel, students,
relatively small, so job losses in the sector will be minor in comparison and overseas workers whose contracts have expired. There are 30
with the total labor force. However, with the public sector already seafarers working on South Pacific Marine Services vessels that are
employing a large share of the workforce, it will not be able to absorb stranded in Fiji and Australia, and 26 temporary contract workers in
private sector workers who lose their jobs because of business closures. Australia that have been laid off and are unable to return home.
Outside of public sector employment, there are few alternative private
sector jobs that are available for displaced workers. Any job losses will Most of the impacts discussed above pertain to employment in the
disproportionately affect the poor and vulnerable groups because formal sector. However, the impact of the pandemic on the workers
social protection programs in these countries are relatively weak. Poor in the informal sector is more severe in the absence of social security
households and vulnerable groups will therefore require more attention benefits that formal sector workers have access to. An ADB rapid
and assistance for them to overcome the COVID-19 pandemic’s assessment estimates that the informal sector in Kiribati is equivalent
impacts on household incomes. to 40% of the country’s labor force. About 400 individuals lost their
sources of livelihood, mostly coming from the informal sector. This
Both countries have limited social protection for certain vulnerable does not include workers in construction and other trade industries,
groups: Kiribati has a senior citizen’s benefit, disability support engaged by private contractors on job availability—usually offered
allowance, and the Copra Price Scheme;1 Tuvalu has the Senior by the government in executing large development projects, such as
Citizen Scheme, a noncontributory old age pension, and the the South Tarawa Water Supply and the Outer Islands Road projects.
Disability Support Scheme. Both countries have provident funds— These projects were supposed to start in 2020, but have been pushed
the Kiribati Provident Fund and the Tuvalu National Provident Fund back because of the pandemic delaying the transportation of critical
(TNPF)—but these cover formal employees only.2 In the face of an staff from overseas. Many in urban areas have been deprived of
economic crisis, workers in the informal sector shoulder the brunt income, such as those working in small private businesses, roadside
of the impacts in the absence of established programs that could vendors, and fisherfolk.
provide financial protection and support.
To mitigate the impacts of the pandemic, the government
Kiribati mobilized a National COVID-19 Preparedness and Response Plan.3
This provided A$11.7 million for health preparedness measures,
When the Government of Kiribati declared a State of Public A$3.2 million for social protection programs, and A$0.8 million for
Emergency on 26 March, it closed ports of entry to the country, support to overseas workers and students. Almost three-quarters
imposed closures of businesses and schools, prohibited community of the allocation to social protection programs are channeled to
gatherings, and embarked on public health awareness campaigns assist workers who have lost their jobs (Figure 5). The government
to enforce physical distancing and hygiene practices. Reduced initiated a cash grant of A$360 per month across the board from
economic activity resulted in forgone earnings for businesses and June to August 2020. This support covers both resident and
job losses for workers. nonresident formal-sector workers whose employment has been
terminated, suspended, or reduced. The response plan also provided
Almost 280 workers have already been laid off, and many businesses support to stranded I-Kiribati workers overseas by subsidizing
are still considering reducing employment or available hours (ADB their accommodation and daily subsistence costs incurred by the
2020a). The Government of Kiribati estimates that 1,040 people employers. The social assistance programs of the government
(3.7% of the Kiribati working population of 28,158) have been came in the form of financial support to students and other citizens
affected, with 69% working in the domestic market and 31% working stranded overseas.10 Pacific Economic Monitor
However, a closer look at these programs indicates that they cater Global travel restrictions have seriously affected the tourism-related
only to workers in the formal sector. To avail of the unemployment businesses, mainly composed of accommodation providers and
income support program, applicants must be a member of the Kiribati handicraft producers. Out of the 40 employees in the tourism sector,
Provident Fund, while the private sector employers must be active 17 were made redundant. While the layoffs are regrettable, the restrictions
members of the Kiribati Chamber of Commerce & Industry. Those put in place are necessary as the alternative would be an overwhelmed
who belong to the informal sector are not members of the Kiribati health system unable to meet the demands of the pandemic.
Provident Fund, and many of their employers are not members of
the Kiribati Chamber of Commerce & Industry. Vulnerable groups, Prior to the pandemic, there were about 920 unemployed women
who depend on the income of workers in the informal sector, are at a residing in Funafuti, Tuvalu’s capital (ADB 2020b). Some had
disadvantage when informal sector workers are excluded from these started to become involved in handicraft businesses, relying heavily
programs. And while the government has allocated A$72.6 million on international tourists and government visitors. Most of these are
for social protection programs (support to older persons and the small and medium-sized enterprises. As the pandemic pushed the
unemployed) in its 2020 national budget, limited data on the government to adopt containment and defensive measures, these
vulnerable can prevent these programs from reaching them. businesses lost their only source of income. Hotels were also forced
to lay off some of their employees, most of which are women, or
Another important component of the government’s response reduce their working hours. With losses piling up, these businesses
plan is the communication and awareness component, and the shifted their operations to other related ventures such as restaurants
importance of ensuring that everyone has access to information. and cafés, but income is substantially smaller compared with what
However, the communication strategies heavily rely on traditional they used to earn before the pandemic.
mass media delivery mechanisms (mainly radio and newspaper)
without taking into account that just over 40% of households have Like many Pacific island countries, Tuvalu is highly dependent on
access to a radio—the primary source of information (ADB 2020a). imported basic commodities. As the government closed its international
The remaining 60% rely on word of mouth for information. ports of entry, it initially fueled speculation that imported food items
would no longer be able to enter the country. This created panic among
consumers who rushed into shops and purchased basic commodities
Figure 5: Social Protection Measures such as sugar, rice, flour, and biscuits in bulk. The spike in demand for
in the COVID-19 Response Plans of Kiribati and Tuvalu these food items led to the skyrocketing of prices, to the disadvantage
% of those with meager incomes. It only abated after the government
100
regulated the purchase of basic commodities by issuing food vouchers
to all households. This ensured that everyone had equal access to the
80
items and that supplies would last until the next cargo ship arrived.
60
The closure of schools disrupted learning, especially since the
40 schools were not prepared to provide alternative means of delivering
education at a distance. Some parents refused to allow their children
20 to return to school when they reopened. Given the logistical
constraints of interisland ferries, parents are concerned that their
0 children might not be able to return home immediately should there
Kiribati Tuvalu
Social assistance Social insurance Labor market programs
be an outbreak of COVID-19 in the country. While the government
continues to improve e-learning to make it a viable alternative to
COVID-19 = coronavirus disease. physical learning, it is expensive and cannot be availed of by those
Sources: ADB estimates using data from COVID-19 response packages and
fiscal budget documents of Kiribati and Tuvalu.
who have no regular income. Another challenge to e-learning is the
unreliable internet connection in the country.
Tuvalu The government launched its Talaaliki Plan to prepare for a worst
case scenario. Its proposed spending for social protection programs
The Government of Tuvalu’s declaration of a State of Emergency on is almost evenly split between social assistance and social insurance
20 March was followed by the closure of its ports of entry, prohibition (Figure 5). A huge part of the government’s social assistance program
of public gatherings, and temporary school shutdown—all aimed at came in the form of a universal cash transfer of A$40 per person,
preventing the entry and spread of COVID-19. The government which was paid out in April and May, providing immediate economic
approved its COVID-19 prevention plan in March 2020, even relief for all in the country. Meanwhile, the government’s social
before Fiji (main entry point to Tuvalu) recorded its first case on 18 insurance program was carried out through the TNPF. It introduced
March. A taskforce was created as soon as the imminent threat of a one-time COVID-19 payout benefit of A$500 for its members
the pandemic was identified. A supplementary budget was passed and a 3-month cash benefit payout support for workers who have
in March 2020, which included A$5.7 million for the procurement been terminated or are working with a reduced wage. TNPF also
of personal protective equipment, ventilators, COVID-19 testing offered loan restructuring and suspension of loan repayments.
equipment, and other supplies.4Country Economic Issues 11
The universal cash transfer program was met both with praise and References
criticism. It provided temporary income support to many informal
workers who are not members of the TNPF. At the same time, however, Asian Development Bank (ADB). 2020a. COVID-19 Rapid
critics pointed out that the A$40 cash transfer per person is inadequate Assessment Report–Kiribati. Unpublished.
to sustain the needs of every individual. The 2-month payout was
provided to all Tuvaluans, including those who are receiving a monthly ADB. 2020b. Rapid Assessment Report 2020–Tuvalu.
pension and even the more affluent individuals. The government Unpublished.
decided to limit beneficiaries to people without regular incomes only
in June. A more targeted payment specifically for vulnerable groups Government of Kiribati. 2020a. National COVID-19 Preparedness
would have allowed for increased adequacy within the existing fiscal and Response Plan. Tarawa.
envelope.
Government of Kiribati. 2020b. National Budget. Tarawa.
Concluding remarks
Government of Tuvalu. 2020. National COVID-19 Taskforce
Government provision of immediate economic relief is a step in the Talaaliki Plan. Funafuti.
right direction, which becomes more important in an environment of
weak social protection systems. Job and income losses are not spread Homasi, L. and I. Wainiqolo. 2020. Impacts of COVID-19 on small
equally, and those impacted have few other options to turn to in terms economies–Kiribati and Tuvalu: Recasting essential reforms. Pacific
of public support. Basic social protection programs that are already in Economic Monitor. July.
place could be further expanded and strengthened, particularly the
system that helps to facilitate superannuation and unemployment
payments in a timely manner. Such reform could be supported by
technical assistance grants from development partners. In the face of Addressing the economic challenges of
any crisis, such as this pandemic, effective response plans must ensure COVID-19 in the Federated States of
that the needs of poor and the vulnerable groups are properly accounted
for. In countries like Kiribati and Tuvalu, geographical remoteness and
Micronesia and the Marshall Islands
isolation create an additional hurdle to effective government response.
It has limited information on where affected people are, how to assess Lead authors: Cara Tinio and Rommel Rabanal
their relative need, and how best to distribute aid.
The previous issue of the Pacific Economic Monitor explored the
The governments of Kiribati and Tuvalu can further improve their near-term economic outlook of the Federated States of Micronesia
response packages and address fiscal sustainability issues surrounding (FSM) and the Marshall Islands amid the COVID-19 pandemic.
social protection spending through better-targeted programs and, in Further information, coupled with expectations that border closures
the long term, broader and effective social protection coverage. and travel restrictions will run well into 2021, now suggests that the
negative socioeconomic impacts on these economies would be
more severe than initially estimated.
Endnotes
In both countries, the private sector is seen to experience the
1
A subsidy which effectively serves as a large cash transfer for downturn more keenly than the public sector. Further, up to 70%
outer islands households. of pandemic-related job losses in the FSM by the end of FY2021
(ends 30 September 2021 for both economies), and about a
2
Formal sector refers to employment in the public sector, including third of that those in the Marshall Islands, are estimated to affect
state-owned enterprises, and registered companies/businesses. women. Informal workers and small, cash-based businesses are also
The informal sector involves the people employed as casual
particularly vulnerable. The resulting losses in income will make it
labor, people in the villages, and those who run small business
more difficult for households to afford their basic needs, exacerbated
enterprises that are not formally registered with government.
by shipping delays because of travel and quarantine restrictions that
limit the supply of imported food and other essential commodities.
3
For additional details on the broad impact of the pandemic and
response of the Government of Kiribati, please refer to Homasi ADB predicts that, by the end of FY2021, the poverty rate will rise to
and Wainiqolo, 2020. more than 36% of the population in the FSM, and more than one-
third of the population in the Marshall Islands. Increased poverty
4
For additional details on the broad impact of the pandemic and and hardship will contribute to declines in social cohesion, including
response of the Government of Tuvalu, please refer to Homasi higher risk of gender-based violence (GBV). Further, prolonged
and Wainiqolo, 2020. local mobility restrictions will disrupt access to education and
health care, affecting human capital development and long-term
prospects for growth.12 Pacific Economic Monitor
In response to these challenges, the governments of the FSM and the yy a food security program for community groups and low-income
Marshall Islands have developed plans to strengthen their respective households, which will provide subsistence livelihood training
health-care systems to prepare for, and manage, any local cases and distribute seeds and planting and fishing materials, as well
of COVID-19; temporarily assist businesses and workers affected as deliver food rations in the event of any COVID-19 cases in the
by the pandemic; and reduce the vulnerabilities of the poor, older country ($2 million);
people, persons with disabilities, and women and girls. This article yy small grants to civil society organizations for increasing
will examine efforts in the FSM and the Marshall Islands to build COVID-19 awareness and preparedness, and GBV prevention,
economic resilience to the COVID-19 pandemic. in communities ($2 million); and
yy other assistance to vulnerable groups, including temporary waivers
Federated States of Micronesia of medical expenses for older people, persons with disability, and
GBV survivors; electricity subsidies and solar lamps for off-grid
In addition to a $29.0 million COVID-19 Health Action Plan, the FSM households in outer islands; increased community health center
government’s countercyclical response program, to be implemented support for GBV survivors; and one-off cash payments to FSM
in FY2020–FY2021, includes an $18.4 million economic stimulus citizens and students stranded abroad ($2.3 million in total).
package (Figure 6). This package comprises: (i) the Tourism Mitigation
Fund, which provides wage subsidies, social security payment and gross Marshall Islands
revenue tax rebates, and interest payment relief on business loans to
qualified tourism businesses—as well as those in other sectors, subject The Republic of the Marshall Islands Coronavirus Preparedness and
to approval by Congress—and temporary unemployment assistance to Response Plan, approved in June 2020, outlines the actions and
migrant workers who have lost their jobs because of the pandemic; and resources required to (i) strengthen the health system’s capacity
(ii) concessional lending, through the FSM Development Bank, of up to for enhanced surveillance, infection control, and case management,
$10,000 to microenterprises and up to $30,000 to small enterprises. particularly in Majuro and Ebeye, the country’s largest population
In addition to the government’s economic stimulus package, citizens of centers and main points of entry ($21.1 million); (ii) provide economic
the FSM and the United States (US) who have lost their jobs or must relief and recovery assistance to businesses adversely affected by
work fewer hours because of the pandemic are receiving temporary prevailing travel restrictions ($12.4 million); (iii) safeguard the well-
unemployment assistance under the US Coronavirus Aid, Relief, and being of vulnerable communities and households, including those
Economic Security Act of 2020. in the more remote parts of the Marshall Islands ($8.3 million); and
(iv) ensure the continuity of essential services, including utilities,
The FSM program also includes social protection programs totaling and support consular assistance and possible evacuation of citizens
$11.3 million. These cover the following: abroad ($4.0 million) (Figure 7). The plan will be implemented in
FY2020–FY2021.
yy a one-time $500 cash transfer to eligible low-income households,
with additional benefits for those that are headed by a woman or
include persons with disability or dependent older persons and Figure 7: Republic of the Marshall Islands Coronavirus
children (the amount for this component will total $5 million); Preparedness and Response Plan
30 12
Figure 6: Federated States of Micronesia Countercyclical
Response Program
9
45 9
15 6
30 6
3
15 3
0 0
Health systems Economic stimulus Social protection
strengthening and continuity of
0 0 essential services
Health Economic stimulus Social protection
Action Plan package programs
$ million % of GDP (rhs)
$ million % of GDP (rhs)
GDP = gross domestic product, rhs = right-hand scale.
Source: Asian Development Bank. 2020. Report and Recommendation of the
GDP = gross domestic product, rhs = right-hand scale. President to the Board of Directors: Proposed Countercyclical Support Facility
Source: Asian Development Bank. 2020. Report and Recommendation of the Grant to the Republic of the Marshall Islands for the Health Expenditure and
President to the Board of Directors: Proposed Countercyclical Support Facility Livelihoods Support Program. Manila.
Grant to the Federated States of Micronesia for the Health Expenditure and
Livelihoods Support Program. Manila.You can also read
